Price elasticity depends on the magnitude and direction of the price change. It may differ for a price cut versus a price increase. When the price changes have little or no effect there might exist a ________ for your product.
A) substitute product
B) selective price
C) price indifference band
D) collective price
E) promotional price

Question

Quizplus · Accepted Answer

A price indifference band refers to a range of prices within which changes in the price do not significantly impact consumer demand. Therefore, if a price change has little or no effect, it indicates that the product is within the price indifference band for consumers, and changes in price are not likely to significantly affect demand. Substitute products, selective pricing, collective pricing, and promotional pricing are not directly related to price elasticity and are not necessarily indicators of an indifference band.

Price Elasticity Depends on the Magnitude and Direction of the Price